Unlocking the Hidden Potential: How Asset Managers Can Reduce Operating Costs with Energy Efficiency
At DataKwip, we empower Asset Managers in the Real Estate industry to reduce operating costs and meet their decarbonization goals. With our data-driven solutions, they can optimize building performance, increase profitability, and exceed their sustainability goals. In this guide, we will show you how Asset Managers can unlock the hidden potential of energy efficiency to reduce operating costs and create a more sustainable future for their buildings and business.
Why Should You Want to Learn How to Reduce Operating Costs with Energy Efficiency?
Reducing operating costs with energy efficiency offers several benefits for Asset Managers:
- Cost Savings: By improving energy efficiency, Asset Managers can significantly reduce operating costs, leading to higher profitability and increased asset value.
- Sustainability Goals: Energy efficiency contributes to the achievement of decarbonization and sustainability goals, allowing Asset Managers to position themselves as climate-friendly organizations and leaders in the industry.
- Competitive Advantage: Asset Managers who prioritize energy efficiency gain a competitive edge by attracting environmentally conscious tenants and investors.
- Risk Mitigation: Energy efficiency measures help mitigate financial and operational risks associated with rising energy costs and changing regulations.
Unfortunately, many Asset Managers struggle to implement energy efficiency measures due to various reasons:
- Lack of visibility into energy-saving opportunities within their portfolio
- Limited knowledge and understanding of low-cost energy reduction strategies
- Challenges in accessing utility rebates and incentives
- Fear of change and uncertainty about the effectiveness of energy efficiency efforts
But fear not! In this guide, we will provide you with a step-by-step approach to unlock the hidden potential of energy efficiency and reduce operating costs in your buildings.
Step 1: Identify Energy-Saving Opportunities in Your Portfolio
The first step in reducing operating costs with energy efficiency is to identify the energy-saving opportunities within your portfolio.
Here's what you need to do:
- Conduct an Energy Audit: Start by conducting a comprehensive energy audit of your buildings to identify areas of inefficiency and potential energy-saving measures.
For example, you can assess the performance of HVAC systems, lighting, insulation, and water fixtures to pinpoint areas for improvement.
- Analyze Utility Data: Analyze your utility data to identify patterns and anomalies in energy consumption. Look for trends, peak usage periods, and areas where energy usage can be optimized.
For instance, you may discover that certain buildings have higher energy usage during non-working hours, indicating the need for better scheduling and control.
- Engage with Tenants and Facility Managers: Collaborate with tenants and facility managers to gather insights on energy usage patterns and potential inefficiencies. Their input can provide valuable information for identifying energy-saving opportunities.
A Datakwip Customer with 7 Buildings totaling 1.24 million square feet and an overall utility bill over $8MM followed these steps and discovered that their buildings had outdated lighting systems and inefficient HVAC controls. By addressing these areas, they were able to discover opportunities to reduce energy consumption by 28% and achieve significant cost savings.
Step 2: Implement Low-Cost Energy Reduction Strategies with Fast Payback
Once you have identified the energy-saving opportunities, it's time to implement low-cost energy reduction strategies with fast payback.
Here's how to do it:
- Upgrade Lighting Systems: Replace outdated lighting fixtures with energy-efficient LED lights. LED lights consume less energy, have a longer lifespan, and require less maintenance compared to traditional lighting.
- Optimize HVAC Controls: Install programmable thermostats and occupancy sensors to optimize HVAC controls. This ensures that heating and cooling systems operate only when needed, reducing energy waste.
- Improve Insulation: Enhance insulation in buildings to minimize heat loss during winter and heat gain during summer. Proper insulation helps maintain a comfortable indoor temperature and reduces the workload on HVAC systems.
- Educate Tenants and Staff: Raise awareness among tenants and staff about energy-saving practices. Provide training on efficient equipment usage, proper insulation, and the importance of turning off lights and equipment when not in use.
By implementing these low-cost strategies, Asset Managers can achieve significant energy savings and fast payback periods. The same Datakwip Customer successfully implemented selected low and no cost strategies from the list of discovered opportunities and achieved a 6.3% reduction in energy consumption within the first year.
Step 3: Access Utility Rebates and Incentives for Additional Savings
To further reduce operating costs, Asset Managers can leverage utility rebates and incentives.
Here's how to access these additional savings:
- Research Utility Programs: Research utility programs and incentives available in your area. Many utilities offer financial incentives for energy efficiency upgrades, such as rebates for lighting retrofits, HVAC upgrades, and energy management systems.
- Partner with Energy Efficiency Service Providers: Collaborate with energy efficiency service providers who specialize in navigating utility rebate programs. These experts can help you identify eligible programs, complete the necessary paperwork, and maximize your savings.
- Track and Verify Savings: Keep track of your energy savings and verify them with utility providers. This ensures that you receive the full benefits of the rebates and incentives you qualify for.
By accessing utility rebates and incentives, the same Datakwip customer received an additional 8% in cost savings, resulting in a total reduction of 14.7% in operating costs ($1.2 MM).
Reducing operating costs with energy efficiency is not only beneficial for Asset Managers but also essential for achieving decarbonization and sustainability goals. By identifying energy-saving opportunities, implementing low-cost strategies, and accessing utility rebates, Asset Managers can unlock the hidden potential of energy efficiency and create a more sustainable future for their buildings and business. Take the first step today and start reducing your operating costs with energy efficiency!